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Dec 19, 2012
12/12
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we believe that every time italy and spain would have to raise money, do those deals, interest rates would shoot through the roof, bankrupting all involved, sovereign countries, companies, banks. instead, by letting cooler heads prevail through can kicking, smart private sector investors kicked the tires, not the cans, and they bought the debt. hit home runs every time they did. as rates came down hard, courtesy of bank backstop that did work. the europeans realized if they stopped the can kicking game cold like so many investors claimed they had to do, well, europe would go into severe depression. they didn't want that kind of austerity, their leaders bought time by kicking the can and that's what was most needed, time. they bought time. how well did it work? considering rates are not only not dramatically higher, they're dramatically lower, and the euro right now, strongest currency in the world. hmm, i thought the euro was supposed to vanish by this time with the secret sellers around the country. i thought greece was supposed to be kicked out of the union. instead, my advice, do
we believe that every time italy and spain would have to raise money, do those deals, interest rates would shoot through the roof, bankrupting all involved, sovereign countries, companies, banks. instead, by letting cooler heads prevail through can kicking, smart private sector investors kicked the tires, not the cans, and they bought the debt. hit home runs every time they did. as rates came down hard, courtesy of bank backstop that did work. the europeans realized if they stopped the can...
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Dec 17, 2012
12/12
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needs to see the confirmation of europe for this thing to go -- >> but look at what will happen if spain activates the omt. any bank that owns all those sovereign debt are going to fly in europe. that's what people are anticipating. you will get that buy-in. >> we saw the banks fly today. bank america, closing at a 52-week high. bertha's got the latest on that. bertha? >> yeah, it's had a really strong day, b of a, extending those gains right now to an 18-month high. it closed at the highs of the day there at $11 a share. whitney says despite the monster run in financials and b of a up, the big banks are better capitalized and poised to be able to deploy earnings more freely. the feds march c-car will serve as what she calls the near term catalyst. the fed should allow b of a more room to use its capital and she thinks the board could quadruple the dividend. she also had citi and discover financial. whitney will be on with maria to talk about that call tomorrow. >> thank you, bertha. when she speaks, especially when it comes to the bank stocks, the stocks do move. do you buy into this mo
needs to see the confirmation of europe for this thing to go -- >> but look at what will happen if spain activates the omt. any bank that owns all those sovereign debt are going to fly in europe. that's what people are anticipating. you will get that buy-in. >> we saw the banks fly today. bank america, closing at a 52-week high. bertha's got the latest on that. bertha? >> yeah, it's had a really strong day, b of a, extending those gains right now to an 18-month high. it closed...
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Dec 15, 2012
12/12
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to pay its bills we know there may come a time when we have to do something along the lines of what spain did or ireland or greece, cut back our social programs dramatically. we'll have to do what the rest of europe will do over time, which is accept a lower standard of living forever everybody which is why the longer-term plan is so vital, not the short-term craziness. because everybody knows he we can't keep providing americans with the current level of services unless we raise taxes in a big way on everyone and cut spending somehow. even the democrats are unwilling to consider that kind of tax cut. that's why long-term spending cuts are so important. they figure into the job creation of the next 25 to 30 years, and the ability of people to stay out of poverty longer term. in the meantime, you can't get the growth needed for government receipts to go higher even in the near term. put simply, if you got someone from honeywell or eaton or celgene in the rule, explain the impact. the imperative would be to get this fiscal cliff done before vacation. hey, listen, yes, no vacation without le
to pay its bills we know there may come a time when we have to do something along the lines of what spain did or ireland or greece, cut back our social programs dramatically. we'll have to do what the rest of europe will do over time, which is accept a lower standard of living forever everybody which is why the longer-term plan is so vital, not the short-term craziness. because everybody knows he we can't keep providing americans with the current level of services unless we raise taxes in a big...
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Dec 28, 2012
12/12
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recession that was in terrible shape to begin with and i think you have a lot of austerity fatigue going on spain, italy, portugal, certainly greece. so you have those economic woes. the euro is not going to thrive and it may survive thanks to the ecb, but you're not going to get that economy to thrive, and the fiscal union ask those are very slow going and though they may be moving quickly by european standards and i've been given the magnitude of the problem going very slowly. >> how should people be thinking about this? the average american, and they've been hearing about it for so long and they're not sure it will affect their pocketbook. do you think they will? >> and there's this incredible chance that greece will leave and the dominos will begin to fall. i think that's unluikely to happen as long as the ecb is willing to support that currency, but will it thrive? will those economies boom? i don't think so, i think it will be another year of recession and you will find individual opportunities and the stock picker's market and far as it's a strong growth, they're not there yet. >> thanks s
recession that was in terrible shape to begin with and i think you have a lot of austerity fatigue going on spain, italy, portugal, certainly greece. so you have those economic woes. the euro is not going to thrive and it may survive thanks to the ecb, but you're not going to get that economy to thrive, and the fiscal union ask those are very slow going and though they may be moving quickly by european standards and i've been given the magnitude of the problem going very slowly. >> how...
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Dec 27, 2012
12/12
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a tragedy really in spain. essentially 350,000 small shareholders you could argue, were conned to buying the bankia stock when the government owned it last year. they had products based on subordinate debt. we learned the bank's net worth is minus 4 billion euros. in other words, these 350,000 ordinary shareholder, ordinary bondholders will likely be wiped out by the recapitalization process and starts tomorrow when they get money from brussels and michele will be in to tell you the senior debt holders and whether they will be wiped out. that's what you call symphony on all the characters. michelle will pick that ball up and run with it later. >> it's a sad story, the last time those people will rally around the flag. >> really disappointing and a huge amount of anger in spain. >> thanks, simon. >> to bertha, still above 90 for crude. >> still above 90. we're almost across the board as the dollar has gotten a little bit stronger. a very interesting year. we're looking at the numbers, the first year you have wti
a tragedy really in spain. essentially 350,000 small shareholders you could argue, were conned to buying the bankia stock when the government owned it last year. they had products based on subordinate debt. we learned the bank's net worth is minus 4 billion euros. in other words, these 350,000 ordinary shareholder, ordinary bondholders will likely be wiped out by the recapitalization process and starts tomorrow when they get money from brussels and michele will be in to tell you the senior debt...
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Dec 13, 2012
12/12
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now we're seeing prices in spain sell off a little bit. the ten-year, just under 5.4% is the level there. for the longer dated papers, investors are a little bit more wary. now, that news coming out of the euro group meeting, i wanted to show you the euro/dollar as we wrap up today's global market support. it's still down .1%, 1.3056. that would tell you that the resolution is largely priced in. now as focus moves into the start of next year, a couple of the key questions will be how much mario draghi follows ben bernan bernanke's caps, maybe even cutting into positive territory. expect to hear plenty more about that in the weeks to come. but for now, some resolution means this is front and center for these fiscal cliffs. back over to you guys. >> kelly, have your bookers called yet? do you know? have you tried to -- it may be better for you to call him directly instead of a booker. can you get him on? don't you want to interview him? he's very charming, too. >> look, maybe, joe, if you help us out. if we all ask nicely enough we can have
now we're seeing prices in spain sell off a little bit. the ten-year, just under 5.4% is the level there. for the longer dated papers, investors are a little bit more wary. now, that news coming out of the euro group meeting, i wanted to show you the euro/dollar as we wrap up today's global market support. it's still down .1%, 1.3056. that would tell you that the resolution is largely priced in. now as focus moves into the start of next year, a couple of the key questions will be how much mario...
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Dec 12, 2012
12/12
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that's what's happening in spain. i want to draw your attention -- use guys were talking about unions. here's a union story that tells something about the rebalancing in the eurozone. potentially germany. we know with the xetera dax up .3%. and almost 30% this year. investors see if the euro project hangs together, it's going to mean renation in germany. that is some wage inflation, some price inflation. the public sector union verde, powerful union, along with some others with its contract up at the end of the year is asking, guys, for a 6.5% pay rise next year. it got about 2.5% for the last couple of years. it is on the public sector side but also an example of what kind of pay hikes we may see flowing through to the german economy. if that helps support spending, despite weak industrial production figures and concern about growth prospects, there may be some rebalancing toward the german consumer taking on more of the heavy lifting across the eurozone. so one to keep an eye on, guys. >> thank you very much. we sho
that's what's happening in spain. i want to draw your attention -- use guys were talking about unions. here's a union story that tells something about the rebalancing in the eurozone. potentially germany. we know with the xetera dax up .3%. and almost 30% this year. investors see if the euro project hangs together, it's going to mean renation in germany. that is some wage inflation, some price inflation. the public sector union verde, powerful union, along with some others with its contract up...
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Dec 10, 2012
12/12
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spain, same thing, we're seeing 5.67 about the level there. other bond yields are benefiting as a result. back over to you guys. i'm sure carolin, too, can help us try to understand now what this all means with mario monti potentially still involved with the next eye toolan government. that may help reassure the markets somehow. >> thank you very much, kelly. we are looking forward to that. right after this, we will be getting that live report from rome. that's where people are starting to figure out, the politicians are out in force campaigning for life after mario monti. but first, today is forecast to be the busiest shipping day of the year for fedex. yikes, that's a reminder that i am way behind on my shopping. courtney reagan is spending the day at the company's center in the bronx. are the packages flying? >> not yet, but the big sort happens in just about 15 minutes. the kre o fred smith thinks this will be a record day in fedex history. i have the details as fedex fills in for sana clause up next. toward all your financial goals. a qui
spain, same thing, we're seeing 5.67 about the level there. other bond yields are benefiting as a result. back over to you guys. i'm sure carolin, too, can help us try to understand now what this all means with mario monti potentially still involved with the next eye toolan government. that may help reassure the markets somehow. >> thank you very much, kelly. we are looking forward to that. right after this, we will be getting that live report from rome. that's where people are starting...
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Dec 17, 2012
12/12
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there's going to be a lot of protests in spain, for example, today. foreign exchange, if we look at the dollar/yen, we look how quantitative easing is going to be a much more enhanced program in japan after the elections. you can clearly see how the dollar has performed quite admirably against that weakening of the currency issue on quantitative easing. remember, for an export economy, this is not something they're so upset about. last, but not least, even our weakened partner in europe, we just discussed, look how the euro versus the dollar is at some of the best levels we've seen since early may. something to pay attention to. we also had empire index on the weak side. and minus 56 billion on october treasury, international capital flows. that's the weakest level since the summer of 2011. now we're going to go to david faber who's talking about a sprint clear wire deal. how clear is it, david? >> we did get the deal itself, rick santelli. thank you very much. after a couple of months of which we've been talking about this. if you recall, back on oct
there's going to be a lot of protests in spain, for example, today. foreign exchange, if we look at the dollar/yen, we look how quantitative easing is going to be a much more enhanced program in japan after the elections. you can clearly see how the dollar has performed quite admirably against that weakening of the currency issue on quantitative easing. remember, for an export economy, this is not something they're so upset about. last, but not least, even our weakened partner in europe, we...
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Dec 24, 2012
12/12
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london, paris, spain have each completed shortened sessions in light of the christmas holiday as well. the friday sell-off, only five trading days are left in the year. is the market getting used to the idea that a fiscal cliff solution will not happen before year end? >> only a few hours remain to finish your christmas shopping. but some words of caution for toymakers. are tablets and apps ruining the season as kids get more accustomed to technology? >> microsoft windows 8 gets more bad press today, as "the new york times" said it is not leading to a boost in pc sales. is there anything that can turn that lagging sector around? futures moving lower, as concerns about the fiscal cliff talks weigh on the market. talks about progress toward a deal sent the down lower by almost 521 points on friday. s&p up almost 14% on the year. it's interesting, this year we've had so many unnatural phenomenon taking place, whether it's the effects of the fed's monetary policy, year end, fiscal cliff tax related issues. the motivations are a little bit different this time around than they were last yea
london, paris, spain have each completed shortened sessions in light of the christmas holiday as well. the friday sell-off, only five trading days are left in the year. is the market getting used to the idea that a fiscal cliff solution will not happen before year end? >> only a few hours remain to finish your christmas shopping. but some words of caution for toymakers. are tablets and apps ruining the season as kids get more accustomed to technology? >> microsoft windows 8 gets...
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Dec 28, 2012
12/12
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in that taking some of those -- in many senses you could call it profit taking -- not in the case of spain where you see a major underperformance. >> let me say the german finance minister suggested he thought the worst of the eurozone crisis is now past. he said the government in athens knows it cannot financially over burden the rest of the eurozone countries and is acting as it should. he was optimistic on france as well despite the fact the data is indicating we'll still get a contraction in the third quarter, for most of the eurozone. germany's economic position is arguably deteriorating but still schauble there is relatively optimistic that the crisis is over. in the meantime what is also happening is this money is beginning to flow into, from the public safety net to support the banks so you have the recapitalization of the banks but that isn't of course good news for everybody in the case of the ipo from last year you have 53,000 small shareholders there effectively having their positions in the debt smashed against the whole. they've been selling out again today to try and retriev
in that taking some of those -- in many senses you could call it profit taking -- not in the case of spain where you see a major underperformance. >> let me say the german finance minister suggested he thought the worst of the eurozone crisis is now past. he said the government in athens knows it cannot financially over burden the rest of the eurozone countries and is acting as it should. he was optimistic on france as well despite the fact the data is indicating we'll still get a...